Cisco to Acquire Isovalent to Define the Future of Multicloud Networking and Security
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The acquisition of Isovalent by Cisco is significant as it represents an expansion of Cisco's capabilities in the cloud-native networking and security space. This move is expected to enhance Cisco's Security Cloud vision, which could lead to increased competitiveness in the cloud security market. Financially, the acquisition could impact Cisco's earnings, with potential for both revenue growth and increased R&D expenses in the short term. Long-term benefits might include stronger market positioning and diversified revenue streams.
Investors should monitor the performance metrics post-acquisition, such as revenue contribution from Isovalent's technologies and the operational efficiency of integrating Isovalent into Cisco's existing business structures. The acquisition might also lead to synergies that could improve Cisco's margins over time.
The integration of Isovalent's eBPF and Cilium technology into Cisco's portfolio represents a strategic enhancement of Cisco's security offerings. eBPF technology allows for a deeper level of system visibility and control, which is crucial for advanced threat detection and response in complex cloud environments. Cilium's ability to provide detailed policy enforcement at the application level is a competitive edge in securing cloud-native applications.
For stakeholders, the implications are twofold: enhanced security features could lead to increased customer trust and sales, while the need to stay abreast of the rapidly evolving cybersecurity landscape could pose a challenge for Cisco to continuously integrate cutting-edge technologies effectively.
The acquisition is indicative of the ongoing consolidation within the cloud security sector, as major players like Cisco aim to provide comprehensive solutions that encompass networking, security and cloud management. The move aligns with industry trends towards multicloud strategies and the importance of securing containerized applications.
The potential benefits for Cisco include an expanded product offering and the ability to cater to a broader range of customer needs in the multicloud space. However, there are risks associated with integrating open source community-driven projects into a corporate structure, which could affect the pace of innovation and community relations.
News Summary:
- Cisco intends to acquire privately held Isovalent, Inc., a leader in open source cloud native networking and security.
- Together, Cisco and Isovalent will build leading edge protection for every workload on every cloud.
- Cisco is committed to nurturing, investing in and contributing to eBPF, Cilium, Tetragon, and cloud native open source communities.
The acquisition of Isovalent will build on the Cisco Security Cloud vision, an AI-driven, cloud delivered, integrated security platform for organizations of any shape and size. The Cisco Security Cloud enables customers to abstract security controls from multicloud infrastructure to provide advanced protection against emerging threats across any cloud, application or workload.
"Together with Isovalent, Cisco will build on the open source power of Cilium to create a truly unique multicloud security and networking capability to help customers simplify and accelerate their digital transformation journeys," said Jeetu Patel, executive vice president and general manager of Security and Collaboration at Cisco. "Imagine in today's distributed environment - of applications, virtual machines, containers and cloud assets - having security controls with total visibility, without hindering networking and application performance. The combination of Cisco and Isovalent will make this a reality."
Isovalent's team is a major contributor to the open source technology eBPF, and has led the development of Cilium, the leading cloud native solution for networking and security. eBPF provides unmatched visibility into the inner workings of the operating system - an ideal interface for building security systems that can protect a workload while it runs. Cilium provides IT and platform engineering teams with powerful networking capabilities and unparalleled visibility into the behavior and communication of cloud native applications, enabling seamless policy definition of software-defined networks. Isovalent has also recently introduced:
- Cilium Mesh: allows for the easy connection of Kubernetes clusters with existing infrastructure across hybrid clouds,
- Tetragon: an eBPF-based open source security solution that provides visibility to and enforces runtime behavior within an application and on the network.
- Isovalent Enterprise: an enterprise distribution of Cilium and Tetragon
Cisco intends to continue offering and building on Isovalent's slate of innovations for customers, including Isovalent Enterprise.
"Cisco is committed to nurturing, investing in, and contributing to the eBPF and Cilium open source communities," said Stephen Augustus, Head of Open Source at Cisco. "Isovalent's team will join Cisco's deep bench of open source governance and technical leadership to solve complex cloud native, security, and networking challenges. Their knowledge will accelerate innovation across the business and help further strengthen the Cisco Security Cloud platform to meet the growing demands of our customers."
Isovalent holds leadership positions in the Cloud Native Computing Foundation and eBPF Foundation, in addition to upstream software contributions, and this acquisition strengthens Cisco's role in supporting the open source ecosystem. Together as leaders in networking and security, Cisco and Isovalent will build solutions powered by eBPF technology that aim to solve the challenge of protecting workloads no matter where they reside. Cisco is committed to Cilium and Tetragon as open source projects and intends to create an independent advisory board to help steer Cisco's contributions to these important efforts in a way that is aligned with the needs of the open source community.
The Isovalent team will join the Cisco Security Business Group once the acquisition closes, which is expected in the third quarter of fiscal year 2024.
Additional Resources
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